(This is a very basic breakdown, as hard/private money terms will most likely require a repayment monthly, but you understand the concept).

Class C is not a segment of the market we are currently pursuing, but the overall concepts apply. 

The concept is supported with a unique 1360 sq ft 2/2.5/0 townhome currently pending at $300k and back in September, a 1/1/1 at 545 sq ft (Yes, 545 sq ft for the ENTIRE house) in the neighborhood sold for $220k. 

The conversation really goes a lot deeper but these are just concepts. 

If you do indeed mean flipping rehabbing, while in theory your concepts for financing the deals is great, I don't know how successful you will be in practice. 

Piggybacking on the last two comments...I think that during the last downturn, so many investors got burned because they were over-leveraged that there is now major push-back against the concept of targeting appreciation.

Sorry...this is a new concept to me.

Or is there a simpler way?

(There is "depreciation" on houses, but it is strictly a tax concept. 

I love the concept of a 203k, but hear they are not "strong offers" - best of luck to you!